The proposed ban was not passed as 14 clubs were required to trigger the rule change and the vote ended 13-7.
Manchester City, Chelsea, Newcastle United, Sheffield United, Nottingham Forest, Wolves and Everton voted against the ban.
City have 12 associated clubs as part of the City Football Group while Newcastle are owned by the Public Investment Fund of Saudi Arabia which owns Saudi Pro League clubs Al Nassr, Al Ahli, Al Ittihad and Al Hilal.
Sheffield United are another Saudi-owned club, the same consortium that owns Chelsea also owns Strasbourg and Nottingham Forest owner Evangelos Marinakis bought Olympiakos in 2010.
United are expected to confirm impending investment from the Ineos Group later this month. Ineos own second-place Ligue 1 side Nice and Swiss side FC Lausanne-Sport.
Newcastle&aposs ownership has been scrutinised on ethical and sporting grounds since the PIF finalised a long-gestated takeover in October 2021.
With a growing injury list to contend with and midfield signing Sandro Tonali suspended for betting breaches, Newcastle have been linked with a loan move for Ruben Neves, who moved to Al Hilal from Wolves in the summer.
Newcastle are now free to move for Neves in January when there are no Saudi Pro League fixtures scheduled.